Utz maintains financial guidance amid pressure from tariffs
According to a statement from CEO Howard Friedman, Utz anticipates just a little effect from the tariffs on its operations because it sources almost all of its inputs domestically and runs all of its factories in the United States.
USA- In its Q1 results release, food company Utz maintained its 2025 financial outlook, aiming for low single-digit net sales growth.
As another element assisting Utz in navigating the tariff turbulence, the CEO praised the company’s goal to save US$150 million by 2026 through a supply chain revamp, above an earlier savings projection of US$135 million.
Utz’s assurance contrasts with those of other food producers who are reducing their projections due to the tariff actions of the Trump administration.
Kellogg announced that it was cutting its annual financial outlook amid ongoing tariffs and falling sales.
“Our 2025 financial outlook now includes a modest impact from tariffs, primarily related to the sourcing of raw materials outside of North America, and assumes that most of our production remains exempt from tariffs on imports from and exports to Canada and Mexico,” Kellogg said in its quarterly report.
Meanwhile, Hershey is requesting that the Trump administration waive tariffs on cocoa. As it clears out its cocoa inventory in Q2, the company anticipates spending US$15–20 million on tariff-related expenses.
However, it anticipates that expenses would increase to US$100 million in the second half of the year when those supplies run out.
Utz is making use of its domestic supply chain and flexibility by increasing its manufacturing and distribution capabilities.
The company opened a new kettle production line in North Carolina in February, a new pretzel line in Hanover in March, and a new distribution center in Hanover, Pennsylvania, in January.
Utz runs eight major industrial sites in Washington, Arizona, Pennsylvania, Michigan, and North Carolina,
Utz Brands Inc. experienced a strong first quarter to kick off fiscal 2025, driven by robust sales of branded salty snacks and improved earnings, with a net income of US$5.7M, or 9 cents per share on common stock for the quarter ending March 30, up from US$2.4M, or 5 cents per share, in the same period last year.
Net sales for the first quarter totaled US$352.1M, reflecting a 1.6% increase from US$346.5M the year prior.
“Looking ahead to the remainder of 2025, we expect that our strong productivity cost savings will continue to give us the flexibility to build our brands and expand our margins,” Friedman said in a statement.
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